The Lore Persists, but Singer Isn’t Sewing Machine Firm Anymore
Isaac Merrit Singer did not invent the sewing machine, but he is credited with developing the first practical sewing device that revolutionized the production of garments--and domestic life--in America.
The company he founded in 1851, which has become the most recent target of corporate raider T. Boone Pickens Jr., left the sewing machine business last year in favor of greater emphasis on military electronics, a move it said would result in an “increased strategic focus.”
Singer, headquartered in Stamford, Conn., derived about 80% of its $1.7 billion in revenue in 1986 from aerospace work, principally involving guidance and navigation systems, aircraft simulators, weapons control systems and electronic warfare equipment.
While U.S. defense budgets have stopped growing rapidly in recent years, the demand for sophisticated electronics is continuing to expand and take up a greater percentage of the defense expenditures.
Singer operates 21 factories in the United States and Europe and has a work force of 28,000. Its Librascope Division in Glendale, which produces weapons control systems for Navy submarines, employs about 1,500 workers. Last year, Singer purchased the Dalmo Victor division, which makes electronic warfare gear, from Textron for $174 million.
The company’s commercial business, which accounted for $294.5 million in 1986 sales, includes producing power hand tools sold under the Craftsman label through Sears, Roebuck & Co. Singer also produces residential and industrial gas meters.
Meanwhile, the company spun off the money-losing sewing machine business. The business lost $22.7 million in 1984, earned a $12.2-million profit in 1985 and lost $19.9 million in 1986. Singer established an entity called SSMC, which is listed on the New York Stock Exchange, put the sewing machine business into it and retained 15% ownership of the operation.
Singer made scant mention of its departure from its historic business in its 1986 annual report. The sewing machine business had suffered for years, owing to foreign competition and a decline in domestic demand for the machines as fewer American women sewed their own clothes.
But in its heyday, the sewing machine had a profound effect on society. In France, traditional tailors rioted and destroyed sewing machines upon their introduction for sewing the uniforms of French soldiers.
In 1851, Isaac Merrit Singer developed a key improvement on the design of Elias B. Howe and founded his own firm, although he was dogged by patent infringement suits brought by Howe. Nonetheless, by 1860 Singer was the largest producer of sewing machines.
SINGER AT A GLANCE
The Stamford Conn.-headquartered firm produces aerospace and marine electronic systems for the government and industry, and also manufactures consumer power tools.
6 mos. Year ended Dec. 31 Mar. 31 1986 1985 1984 Revenue (millions) $872 $1,730 $2,420 $2,520 Net income (millions) 5.4 58.5 82.3 50.3
Assets $1.3 billion
Employees 28,000
Shares outstanding 20.96 million
12-month price range $54 - $37.25
Friday close (NYSE) $51.50, up $4.625
